Earnings Per Share

3 Months Ended

Mar. 31, 2016

4. Earnings Per Share

Basic earnings per share (EPS) is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. Potential common shares that may be issued by the Company relate solely to outstanding stock options and are determined using the treasury stock method. The following table sets forth the computation of basic and diluted earnings per share:


(Amounts, except earnings per share, in thousands)

	Three Months	Three Months
	Ended	Ended
	March 31, 2016	March 31, 2015

Net income	$ 1,292	$ 924
Weighted-average common shares outstanding	4,798	4,187
Basic earnings per share	$ 0.27	$ 0.22

Weighted-average common shares outstanding	4,798	4,187
Common stock equivalents due to effect of stock options	-	1
Total weighted-average common shares and equivalents	4,798	4,188
Diluted earnings per share	$ 0.27	$ 0.22